JGBs Fall, Tracking Declines in Treasurys

Japanese Government Bonds (JGBs) experienced a downturn in the morning Tokyo session, following a decline in U.S. Treasury prices overnight. The movements of JGBs and Treasurys are generally closely aligned. Analysts indicate that JGBs may also be negatively impacted by the yen's recent depreciation. A weaker yen tends to increase import costs for Japan, which could lead to accelerated inflation and heightened expectations for rate hikes by the Bank of Japan to control inflation. The yield on the 10-year JGB increased by 1.5 basis points to 1.055%, marking the highest intraday level in over three months, while the 30-year yield also rose by 1.5 basis points to reach 2.290%.